Could Seagate (STX) and Acronis Team-Up Reveal a New Edge in AI-Driven Storage Competition?

• In recent days, Seagate Technology Holdings entered a partnership with cybersecurity firm Acronis to address growing data management demands from artificial intelligence, cloud computing, and data centers, showcasing its new Heat-Assisted Magnetic Recording (HAMR) technology for advanced storage solutions.
• This collaboration highlights Seagate's focus on innovation and its efforts to strengthen its position ahead of competitors amid rapid shifts in the data storage industry.
• We'll examine how this new alliance and momentum in AI-driven storage needs could modify Seagate's investment narrative and future growth assumptions.

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Seagate Technology Holdings Investment Narrative Recap

To hold Seagate Technology Holdings as a shareholder, you need to believe in the long-term impact of mass capacity storage growth driven by AI and cloud computing. The recent partnership with Acronis spotlights Seagate's innovation in HAMR technology, yet its effect on the near-term outlook hinges on whether strong AI-driven demand can offset ongoing risks like high debt and supply constraints; for now, the impact appears supportive but not a singular catalyst or risk changer.

Among recent developments, the July launch of Seagate's 30TB HAMR-based hard drives stands out as the most relevant to the AI and cloud storage theme. These product advancements reinforce the primary catalyst of heightened demand for next-generation storage solutions, an area central to Seagate's current investment narrative and growth potential.

However, even with all this momentum, investors should be aware that high debt levels remain a concern if...

Read the full narrative on Seagate Technology Holdings (it's free!)

Seagate Technology Holdings is expected to achieve $12.0 billion in revenue and $2.5 billion in earnings by 2028. This outlook is based on a projected 9.5% annual revenue growth rate and a $1.0 billion increase in earnings from the current level of $1.5 billion.

Uncover how Seagate Technology Holdings' forecasts yield a $170.00 fair value, a 25% downside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range from US$55 to US$230.57 per share. While many believe new HAMR product launches could strengthen growth, opinions differ widely and can reshape expectations for Seagate’s future.

Explore 5 other fair value estimates on Seagate Technology Holdings - why the stock might be worth as much as $230.57!

Build Your Own Seagate Technology Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Seagate Technology Holdings research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Seagate Technology Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Seagate Technology Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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